HARBIN, China, Dec. 3, 2012 /PRNewswire-FirstCall/ -- China XD Plastics Company Limited (NASDAQ: CXDC, "China XD Plastics" or the "Company"), one of China's leading companies engaged in the development, manufacture, and sale of modified plastics primarily for automotive applications, today announced the successful opening of its new production lines as part of the Company's previously announced capacity expansion plan.
The event was marked by an official opening ceremony at the Company's newly developed production facilities in Harbin, China on December 3, 2012. The ceremony included remarks from the Company's senior management, a tour of its production facilities, and the official launch of the new production lines by Mr. Jie Han, Chairman and CEO of China XD Plastics.
Based on the Company's long-term development strategy, the new production lines will be utilized primarily for the manufacture of higher value-added modified plastics products. Once fully ramped up, the lines will increase the Company's total production capacity by 135,000 metric tons to 390,000 metric tons per annum. The additional capacity will start to contribute to the Company's production capacity during the first quarter of 2013.
The new production lines are stationed in the Company's three newly-built plants within the Company's Number 3 production base in Harbin. As part of the development of the new production lines, the Company also completed the purchase of over 60 sets of specialized research and development equipment to enhance its capability of higher value-added product development. The production expansion and addition of research and development equipment will facilitate China XD Plastics to meet the growing demand for higher value-added modified plastic products and further diversify the Company's leading product portfolio.
Mr. Jie Han said: "Today marks another important milestone in the Company's development, and along with our continuing investments in research and development, this new capacity is a significant part of our long-term growth strategy. The higher value-added and higher margin products manufactured on these new production lines will allow us to better accommodate the growing demand for our products and further diversify our modified plastics product portfolio. Going forward, we will continue to make strategic investments that strengthen our market-leading position and help us deliver long-term value to our shareholders."
About China XD Plastics Company Limited
China XD Plastics Company Limited, through its wholly-owned subsidiaries, develops, manufactures and sells modified plastics, primarily for automotive applications. The Company's products are used in the exterior and interior trim and in the functional components of 23 automobile brands manufactured in China, including AUDI, BMW, Toyota, Buick, Mazda, VW Golf, Jetta, and Hafei new energy vehicles. The Company's wholly-owned research center is dedicated to the research and development of modified plastics, and benefits from its cooperation with well-known scientists from prestigious universities in China. As of September 30, 2012, 236 of the Company's products have been certified for use by one or more of the automobile manufacturers in China. For more information please visit http://cxdc.irpage.net/.
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, statements reflecting management's current beliefs regarding anticipated deployment of additional productions lines and capacity; expected utilization and contribution of newly purchased research and development equipment; market trends and growing demand for higher value-added modified plastic products; our ability to diversify our modified plastics product portfolio; and our future growth prospects and market position. These statements and other forward-looking statements are subject to uncertainties and risks detailed in the Company's filings with the Securities and Exchange Commission and available on its website at http://www.sec.gov. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company and the industry. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.
China XD Plastics Mr. Taylor Zhang, CFO (New York) Phone: +1-212-747-1118 Email: firstname.lastname@example.org
SOURCE China XD Plastics Company Limited